Within A Month, Three Photovoltaic Companies in The United States Collapsed

Since 2024, the US photovoltaic industry has experienced an unprecedented winter, with many companies facing enormous operational pressure, and this wave of impact is still ongoing.

On July 19th, American solar giant SunPower suddenly collapsed, with a drop of over 57% during trading and a cumulative drop of 75% for the week; Its latest stock price hit a historic low of $0.68, officially sounding the "one dollar delisting warning".

According to the latest media reports, SunPower sent a letter to distributors on July 17th local time, stating that the company no longer supports the sale of new leasing and power purchase agreements, nor does it support the installation of new projects and will stop shipping. SunPower stated in the letter that the company is no longer able to provide installation services for transported and delivered goods. SunPower is aware of the seriousness of this decision and is seeking alternative suppliers to transfer the sold projects, while also working to resolve the company's financial situation.

In fact, due to operational difficulties, SunPower announced in April this year that it would lay off about 1000 jobs, accounting for approximately 26% of the total workforce. As one of the largest photovoltaic companies in the United States, Sunpower had over 5000 employees and has offices in China, Switzerland, Germany, Italy, Spain, South Korea, the United States, Australia, the United Kingdom, Greece, Israel, and the Philippines.

It is worth noting that this is the third American photovoltaic company to collapse in over a month.

In early July, American solar manufacturer Toledo Solar announced that the company had gone bankrupt. Toledo Solar stated in a statement that it will immediately cease all research and development work and gradually cease operations.

Unfortunately, we are unable to obtain the technology license required to manufacture cadmium telluride (CdTe) modules. Our original plan was to produce this module to supply the residential and commercial markets, "said Tom Pratt, who was hired as interim president, financial director, and secretary of Toledo Solar in 2023." Once we were determined that we could not obtain the appropriate technology, we turned to a different business model, but the threshold for success was raised. Ultimately, the Toledo Solar board of directors has determined that there is no business that can continue to be conducted, and they have voted to cease operations.

It is worth mentioning that in March last year, Toledo Solar was sued by First Solar, the manufacturer of cadmium telluride thin film solar panels at the time, accusing the company of "fraudulently" reselling old First Solar modules as its own products. In September 2023, the lawsuit reached a settlement for undisclosed amounts. At the same time, Toledo Solar announced a change in direction, no longer producing thin-film modules, but producing crystalline silicon modules suitable for high temperature, high humidity, and harsh weather environments such as hurricanes, tornadoes, and hail.

On June 18th of this year, Titan Solar Power, a US household solar installer, sent an email to its employees notifying them that it had failed to sell its equity and would permanently shut down. According to public information, Titan Solar Power was founded in Arizona in 2013 and is one of the largest household solar installers in the United States. In 2023, Tita ranked sixth in the US household photovoltaic market.

As an 11 year old American household photovoltaic company, its closure includes both issues with the company's business model and the impact of the Federal Reserve's interest rate hike. According to the analysis of Solar Insurance, a US household solar insurance provider, Titan's problem lies in its excessive reliance on third-party distributors for sales, while Titan only focuses on household photovoltaic installation, which leads to difficulties in communication with customers and significant differences in customer service experience.

Therefore, Titan has accumulated a large number of negative reviews and legal disputes among customers, which is also one of the reasons that have dragged down business operations and growth.

The analysis also pointed out that since last year, the Federal Reserve has frequently raised interest rates to combat inflation, resulting in increased borrowing costs and inadvertently affecting the US household photovoltaic market. This is because the US household market often reduces customers' initial investment through loans, and the frequent interest rate hikes by the Federal Reserve have led to higher loan interest rates, resulting in increased investment costs for household photovoltaics and a decline in attractiveness.